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Weekly Tips

Can I Be Fired for Declaring Bankruptcy?

The short and simple answer is "no". The Federal Bankruptcy Act prohibits employers from firing employees solely because they've filed for bankruptcy, but there may be other signs leading up to bankruptcy that could serve as cause for your dismissal.

If you regularly handle money as part of the job, your employer is likely quite interested in the stability of your personal finances and credit history. In this case, some states do allow employers to access credit reports with your permission for periodic checks.

As you might imagine, overwhelming large debts and missed payments that lead up to your bankruptcy could be seen as an increased risk and result in early termination. But the truth is a lot of employers don't check credit reports at all, which means yours may never even find out about your credit problems.

*If you're considering bankruptcy, be sure to get a free bankruptcy consultation with an experienced attorney today.

on Sun, 2010-06-27 17:00